The Royal Government of Bhutan has executed a transfer of $23.73 million in Bitcoin to the Binance exchange, coinciding with the cryptocurrency’s surge to a historic high surpassing $112,000. This move reflects the government’s ongoing strategy of capitalizing on market peaks.
According to data from Arkham Intelligence, Bhutan conducted multiple transactions totaling 213 BTC, with the most significant transfer, valued at $23.18 million, occurring just two hours before the market’s close.
This latest round of sales reduces Bhutan’s remaining Bitcoin reserves to 11,711 BTC, equivalent to about $1.3 billion, solidifying its status as the sixth-largest government holder of Bitcoin worldwide.
Source: BitcoinTreasuries
This strategic timing aligns with Bitcoin’s recent breakthroughs past previous resistance levels, indicating that Bhutan’s trading decisions are driven by careful market analysis rather than arbitrary liquidation actions.
In contrast to other sovereign Bitcoin holders, Bhutan has demonstrated a remarkable ability to time its market moves effectively, notably contrasting with Germany’s recent liquidation strategy that proved costly.
In July, the German government sold 49,858 BTC at $53,000 each, which led to an estimated potential loss of $2.015 billion; those holdings would currently be valued at approximately $4.57 billion.
Unlike El Salvador’s strategy, which emphasizes a buy-and-hold approach with President Nayib Bukele committing to never sell Bitcoin reserves, Bhutan has opted for a more dynamic trading strategy. El Salvador holds 6,233 BTC valued at around $693 million, while Bhutan’s holdings nearly double that amount while strategically selling during favorable market conditions.
Source: NayibTracker
Hydro-Powered Mining Empire Funds Strategic Trading Operations
The sustainable Bitcoin mining operations in Bhutan are supported by the country’s abundant hydroelectric resources derived from its Himalayan rivers.
Since initiating Bitcoin mining in April 2019, when Bitcoin prices hovered around $5,000, Bhutan has built a significant reserve through energy-efficient mining operations, which contribute to over 25% of the country’s GDP.
Druk Holdings and Investments, Bhutan’s sovereign investment entity, reports having mined 13,011 BTC since the beginning of its operations and has diversified into additions like Ethereum, BNB, and Polygon.
The investment arm manages the country’s flagship airline, numerous hydroelectric plants, and various industrial ventures beyond its cryptocurrency activities.
A partnership with Singapore-based mining giant Bitdeer has also enabled Bhutan to expand its mining capabilities via a 600-megawatt facility in Gedu, ranking the nation among the world’s largest sustainable Bitcoin mining operations.
Significantly, the country’s primary facility is located on the grounds of a previously stalled $1 billion Education City project, repurposing existing infrastructure for cryptocurrency production.
Source: Forbes
Insights from satellite imagery indicate that construction on these mining operations began in December 2021. Although the facilities are tucked away within mountain terrain, they are discernible through their transformer installations and established power line networks.
This advantageous location not only ensures access to energy but also provides operational security for the government’s digital asset accumulation initiatives.
Moreover, Bhutan has initiated the world’s first national-level crypto tourism payment system, collaborating with Binance Pay and DK Bank to facilitate cryptocurrency transactions at over 100 local merchants.
Bhutan becomes the first to offer a national crypto payment system for tourism through Binance Pay.#Bhutan #Binance https://t.co/PR8sbIBtFn
— Finance Newso.com (@Finance Newso) May 7, 2025
This system accommodates more than 100 cryptocurrencies, enabling digital payments for a variety of goods and services, from airline tickets to fruit purchases at roadside stalls.
Smart Money Strategy Outperforms Buy-and-Hold Approaches
Bhutan’s deliberate selling strategy has proven more lucrative compared to the passive holding tactics seen in other countries.
Within the last two months alone, the Bhutanese government has sold 1,696 BTC at an average price of $81,999, effectively leveraging market appreciation while preserving significant long-term holdings.
Source: Arkham Intelligence
Recent transactions included a major transfer of 208.56 BTC valued at $23.18 million, along with smaller transactions totaling $273,000 and $238,000, all executed under optimal market conditions.
The government has exhibited advanced portfolio management by transferring USDT between Binance and Kraken exchanges to maintain operational liquidity.
In a noteworthy development, Gelephu Mindfulness City, Bhutan’s Special Administration Region, has recently announced plans to include Bitcoin, Ethereum, and BNB in its official strategic reserves, marking a pioneering step in recognizing digital assets within governmental portfolios.
This autonomous city aims to act as an economic link between South Asia and Southeast Asia.
Matrixport is applying for a Financial Services Permission Licence in Bhutan’s Gelephu Mindfulness City (GMC).
This marks Matrixport’s first expansion into South Asia, aligning with GMC’s progressive regulatory framework for blockchain and fintech.#Matrixport #VirtualAssets pic.twitter.com/hnC0XkSW7D
— Matrixport Official (@Matrixport_EN) December 18, 2024
Additionally, Matrixport has become the first licensed crypto firm to establish operations in this Mindfulness City, which functions under unique regulatory conditions aimed at attracting blockchain enterprises.
Currently, Bhutan’s portfolio is valued at $1.303 billion, inclusive of Ethereum assets, which comprise approximately 43% of the nation’s GDP of $3 billion.
This tactical sales approach during market highs has successfully generated considerable wealth for Bhutan, allowing the small Himalayan kingdom to sidestep the opportunity costs faced by less adept government sellers.
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